Arnold Industries has pretax accounting income of $$88$ million for the year ended December $31,2024.$ The tax rate is $25\%.$ The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December $28,2024.$ An $$64$ million advance rent payment at the inception of the lease is tax$-$deductible in $2024$ but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four$-$year lease term.

Required:

Complete the following table given below and prepare the appropriate journal entry to record Arnold$$s income taxes for $2024.$

Prepare the appropriate journal entry to record Arnold$$s income taxes for $2025.$ Pretax accounting income was $$120$ million for the year ended December $31,2025.$

Assume a new tax law is enacted in $2025$ that causes the tax rate to change from $25\%$ to $15\%$ beginning in $2026.$ Complete the following table given below and prepare the appropriate journal entry to record Arnold$$s income taxes for $2025.\backslash$table$[[($$ in millions$),,$Tax Rate $\%,,$Tax $$,$Recorded as:$,],[$Temporary Difference $-$ Beginning of Year,,$,,=,,],[$Temporary Difference $-$ End of Year,,$,,=,,],[$Change in Deferred Tax account,,,,,,$],[$Income taxable in current year,,$,,=,,]]$